Looks cool, it would even be useful in landscape mode if you provide half the row on left side i.e. qwert, and yuiop on the other side. I think I've seen this setup on a Win XP tablet computer Lets hope someone build a native virtual keyboard like this
Too many gestures can begin to make it hard to type. You only want to have gestures in this case going side-to-side, or else it becomes too easy to mistakenly move something. Dragging the OK row up could be an option. (Heck, maybe just have a single function button next to OK, but different gestures for different functions.) But then again, it might be a bit cumbersome to figure out.